[miningmx.com] – ANGLO American subsidiary, Anglo American Platinum (Amplats) reported no progress in efforts to resolve a strike with the Association of Mineworkers & Construction Union (AMCU) which entered its seventh day today.
The group said in an announcement that employee turnout at its Rustenburg and North Pilansberg operations had been less than a fifth as AMCU members, on a legal and protected strike, stayed away from work.
AMCU is protesting against plans by Amplats to restructure its Rustenburg which it said would involve the loss of about 3,300 jobs. The company initially said that up to 14,000 jobs might be affected, an impact that has been lowered largely owing to a decision by Amplats to re-organise production at the loss-making areas.
The intensity of the strike is also affected by wage negotiations in which unions have demanded significant increases of 60% or more for entry-level workers whilst Amplats has said it has “no appetite” for double-digit wage increases.
Amplats said today that as a result of strike action it had lost 3,100 ounces of output per day. Including production days on the weekend, this is a total of 21,700 ounces which at an average platinum price over the period of $1,399/oz is equal to approximately $30m in revenue or R300m at the current rand/dollar exchange rate.
Amplats has said in the past that the strike would only worsen the economic position of the mines in the Rustenburg area.
In July, Amplats reported an increase in its interim operating profit for the group’s mines to R1.3bn against a loss of R2.2bn in the previous period, but there was an operating free cash outflow of R411m nonetheless.
The group suspended the dividend and expressed concern and the cash outflow and increase in debt, up nearly 30% to R13.2bn from R10.2bn ended-December.
AMCU president, Joseph Mathunjwa, told Reuters yesterday that he was hopeful of the sides coming “closer together” after ending a “marathon” session of talks. The report did not provide details on the nature of the discussions.
“This is a legal and protected strike for AMCU affiliated employees only which means that AMCU members on strike will not be subject to disciplinary procedures,” said Amplats in its statement to the JSE.
“The no- work no-pay principle will be applied to all employees who are not reporting for duty. The Company continues to engage with AMCU to try and return the business safely to optimal operation levels,” it said.
“Anglo American Platinum is monitoring the situation and is working closely with local authorities to ensure that there is peace and stability during the strike.”
